Technical Note: Strategic staffing model for electric utilities

Historically, utilities have been granted a natural monopoly status through the regulatory process. Under such conditions, utilities need to prove to their regulators that their expenditures were necessary to comply with imposed "obligation to serve." When these prudency arguments are successful, the utilities may recover their costs plus a rate of return. Some have argued that this structure has not created an environment that fosters productive efficiency. With deregulation on the horizon, the utility business is changing. To survive the 21st century, utilities need to find ways to improve their efficiency. One such avenue is strategic staffing.